[Moderator's note: this post has been altered for legal reasons]
Please note this is NOT about PFP going under liquidation, it is about one of its insurance companies that PFP backed that is very likely to go under liquidation. This post is meant as a warning to other accountants who have fee protection with PfP and NOT let PfP get away with it.
The insurance company CBL Insurance (Europe) is very likely going into liquidation. Application has been made by KPMG to the Central Bank of Ireland. I received an email from PfP outlining this issue.
My claim of over £1000, would depend on the sufficiency of assets in CBL. I paid all the premiums.
This raises serious issues about PfP trustworthiness. It appears that have taken the benefits of my business but none of the risks. They appear to absolve their responsibility and leaving everything to CBL liquidator. There is no mention of their responsibility.
What is PfP legal obligation here? I know a question for legal minds.
There is also a concerning issue when we charge clients for fee protection, can we pass the risk of insurer going into liquidation to clients? Unlikely. We as accountants would lose out.
Any thoughts about the issue?